Question

Andrews, a private wealth manager, is conducting interviews for a new research analyst for his firm. One of the candidates is Wright, an analyst with a local investment bank. During the interview, while Wright is describing his analytical skills, he mentions a current merger in which his firm is acting as the adviser. Andrews has heard rumors of a possible merger between the two companies, but no releases have been made by the companies concerned. Which of the following actions by Andrews is least likely a violation of the Code and Standards?

1) Asking Wright for more details about the merger
2) Asking Wright if he has any insider information about the merger
3) Asking Wright about his role in the merger
4) Asking Wright about his experience in mergers and acquisitions

Answer 1

Asking Wright for more details about the merger is the least likely action by Andrews that would violate the Code and Standards.

Step-by-step explanation:

The least likely action by Andrews that would violate the Code and Standards is asking Wright for more details about the merger. According to the Code and Standards, it is important for investment professionals to maintain the integrity of the market and avoid trading on non-public material information. By asking for more details about the merger, Andrews would be seeking insider information and potentially violating the Code and Standards.

Asking Wright if he has any insider information about the merger would also be a violation, as it implies seeking non-public material information. However, asking Wright about his role in the merger and his experience in mergers and acquisitions are both acceptable and relevant questions during the interview process.